Financial Times FT.com

Libor remarks fail to put unease to rest

By Michael Mackenzie in New York and Gillian Tett in London

Published: June 2 2008 02:49 | Last updated: June 2 2008 02:49

When the British Bankers Association issued a statement on Friday saying a key advisory committee did not plan to make immediate changes to how it calculates Libor, some officials hoped this might quell the current controversy about this crucial daily benchmark of money market behaviour.

Such hopes, however, seem naive. For while the BBA might have backed away from radical reform, unease about this benchmark remains high – not least because money market tensions are continuing to plague the system.

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